The Australian Strategic Policy Institute warned of the nation’s increasing vulnerability to cyber attacks, putting at risk not only its defense system but also its economy, businesses, food production, power and water supplies, transport, and telecommunications; the government is especially worried about sustained cyberattacks from China; the center, operated by the highly secret Defense Signals Directorate, is part of a series of moves launched last year under the government’s cyber security strategy

Chinese government intelligence operatives exploited vulnerabilities in Internet Explorer 6 and higher to launch sustained cyber attacks against 32 Western companies operating in China; the hacking of the Gmail accounts of political dissidents were but a tiny part of the attacks; rather, the attacks were part of a coordinated campaign that targeted the intellectual property of a wide swath of the U.S. industrial base, including Dow Chemical, Symantec, Yahoo!, Northrop Grumman, and Juniper Networks; wide-ranging industrial espionage is a central element in the Chinese government’s effort to hasten the rise of China to a position of global economic hegemony

The cracking techniques used by Chinese government operatives in the assault on Google and 31 other Western companies, used multiple malware components, with highly obfuscated code designed to confound security researchers; this marks out the Chinese attack as one of the most sophisticated hacking attacks to date; why was the search engine giant using the famously vulnerable IE6 remains a mystery

The Los Angeles-based law firm Gipson Hoffman & Pancione sued China for lifting Web-filtering code developed by U.S. company Cybersitter; Chinese companies and government agencies stole the code in order to use it in the Chinese government’s effort to create tighter Web censorship and tracking system (China’s Orwellian name for the project” “The Green Dam Youth Escort monitoring program”); on Monday, Chinese hackers began to hack the law firm’s computer systems, in a manner strikingly similar to the attacks by Chinese intelligence operatives on Google, Adobe Systems, and 32 other Western companies

The Chinese government says it will try to persuade Google to continue its operations in China, but expect Google – and other foreign companies — to “respect local law and regulations and local culture and customs to shoulder social responsibility”; Google already made concessions to Chinese law and regulations by allowing the government to dictate what users can – and cannot — find when they do Google searches; Google’s decision to leave China came after Chinese intelligence agents hacked the Gmail accounts of political dissidents and human rights activitists

The test, which starts 9 February, will have different scenarios for each of four different types of businesses: Financial firms, retailers, card processors, and general businesses; on each day, participants will receive a description of a specific scenario for their category of business, building on the previous day

In order to operate in China, Google agreed to implement stringent government-dictated censorship as to what Chinese consumers can – and cannot – find when doing Google searches; Google’s compliance with Chinese censorship was harshly criticized by human rights and freedom-of-speech organizations, but Google responded that this was the cost of doing business in China; the Chinese government’s hacking of Gmail accounts in order to monitor political dissidents proved to much for Google, though, and the company is now set to end its operations in China

Google’s decision to leave China is a rare show of defiance in a market where the government punishes those who do not play by the rules; in industries from automaking to fast food, companies have been forced to allow communist authorities to influence — and sometimes dictate — their choice of local partners, where to operate, and what products to sell; many high-tech companies operating in China are forced to open their intellectual property and industrial secrets to their Chinese competitors – or to Chinese government officials, who pass on that property to Chinese companies – allowing these Chinese companies to reverse engineer and copy Western companies’ products and solutions; Western companies have struggled to make headway against intense competition from Chinese rivals – rivals who enjoy the fact that the Chinese government writes rules which tilt the playing field in favor of Chinese companies

Most bulletproof hosts which allow music, video, and software to be illegally shared online are located in China, where criminals are able to take advantage of low costs and legal loopholes to avoid prosecution; despite officials in Beijing talking in tough terms about computer crime — hacking potentially carries a death sentence in China — the authorities rarely cooperate with other countries to take action against hi-tech criminals; as a result, just a handful of firms in China are responsible for hosting thousands of criminal enterprises online; one example: more than 22,000 Web sites which sent pharmaceutical spam were hosted by six bulletproof servers in China

The only thing we can say for sure about 2010 is terrorists, criminals, and mother nature will surprise us at some point during 2010; still, based on what we do know, we offer a short list of topics we predict will dominate the homeland security discussion in the coming year – from whole-body scanners to 100 percent air cargo screening to social Web sites to communication interoperability to the consequences of climate change (or is there a climate change?)

Iraqi insurgents, using a $25.95 off-the-shelf commercial application, were able to intercept communication between U.S. surveillance UAVs and the UAVs’ command center; the hacking was discovered when the U.S. military found files of intercepted drone video feeds on laptops of captured militants; U.S. soldiers discovered “days and days and hours and hours of proof,” one U.S. officer said; the same hacking technique is known to have been employed in Afghanistan; the U.S. government has known about the UAV communication flaw since the 1990s, but assumed its adversaries would not be able to take advantage of it.

On 12 January Adobe will release patches to fix zero-day vulnerabilities in Reader and Acrobat; malicious Adobe Acrobat PDF files are distributed via an e-mail attachment that, when opened, executes a Trojan that targets Windows systems, according to Symantec; the rate of infection is extremely limited and the risk assessment level is very low, the company said.

Further adoption of cloud, social media, and virtualization technologies will continue to blur the network parameter; organizations — large and small — should consider a layered, centralized security solution that provides multiple security touch points within the network, rather than around it

The long view

Russia’s attack on American elections in 2016, described in Special Counsel Robert Mueller’s recent report as “sweeping and systematic,” came as a shock to many. It shouldn’t have. Experts had been warning of the danger of foreign meddling in U.S. elections for years. Already by 2016, the wholesale adoption of computerized voting had weakened safeguards against interference and left the United States vulnerable to an attack. So, too, the shift to digital media and communications had opened new gaps in security and the law that could be used for manipulation and blackmail.

Caution and restraint are not known as the hallmarks of the digital revolution. Especially when there’s the admirable possibility of increasing participation by going digital, the temptation to do so is strong—and rarely resisted. But a decision reportedly taken by the Democratic National Committee, however, presents a significant display of caution that deserves both attention and praise. “Showing restraint usually isn’t exciting or flashy,” Joshua Geltzer writes. “But it can be admirable. And, here, organizations like the DNC that take these steps deserve our collective applause for erring on the side of caution, especially in a world replete with cybersecurity and election interference threats.”

Bitcoin’s blockchain has been hijacked by a new strain of the Glupteba malware that uses the network to resist attacks, cyber security researchers have warned. The malware uses the bitcoin blockchain to update, meaning it can continue running even if a device’s antivirus software blocks its connection to servers run by the hackers, security intelligence blog Trend Micro reported this week.